America’s Got Talent is a very high-stakes talent competition because of its $1 million prize. The judges constantly mention that they are looking for a $1 million act. Terry Crews always stresses how much the acts are battling it out for the coveted prize. Every act shares how the money would change their lives. In reality, the prize money does have a lot of loopholes.
The ‘America’s Got Talent’ Prize is Not Actually $1 Million
Longtime fans of AGT might have seen this familiar disclaimer about the prize money at the end of every season. Season 15 champion Brandon Leake was announced as the winner just as the statement flashed on the screen. There is usually way too much happening on the screen to be able to focus your attention on reading the disclaimer.
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The disclaimer says the following:
“The prize, which totals $1,000,000, is payable in a financial annuity over forty years, or the contestant may choose to receive the present cash value of such annuity. Contestants are informed of the rules prior to the show and must meet eligibility requirements to receive announced prizes.”
It does not come as a surprise to the winners that they will not be handed a check for $1 million immediately after winning the show. They are told beforehand about the details of the prize money if they do end up winning. It might come as more of a surprise for fans of the show who have been invested in voting for their favorite acts for the past
years.
If the AGT winner chooses the 40-year payout option, they will receive $25,000 a year for 40 years. This is a more feasible option for younger winners who are still in school or are in the very early stages of their careers. This payout is considered taxable income. The final sum of money that they will earn after 40 years will equal less than $1 million.
